Sustainability Report 2022

CEO’S MESSAGE

CEO’s Message

A look at the environmental chapter shows that while we made great strides in relation to waste separation, we were less successful in meeting the water targets we had set at the beginning of 2022. But rather than dishearten us, this result has strengthened our resolve to explore new initiatives to better manage our water consumption, particularly given that our airport serves a very water-stressed country that is put under additional stress with the influx of tourists in summer.

Additional pressures on the country’s limited resources and infrastructure that stem from tourism constitute one of the reasons why we, together with the Malta Tourism Authority, have always made it a priority to address seasonality and promote Malta as a year-round destination as part of our traffic development strategy for the islands.

While we know that our company’s efforts will neither solve the country’s water issues nor the world’s climaterelated challenges, we firmly believe that our initiatives are an important part of the solution. Only if we are convinced that we are actively contributing to the shaping of a better future and have our house in order in relation to environmental and social matters, can we take the next steps and start holding our partners accountable for their own practices and actions.

In this regard, am particularly pleased that earlier this year our sustainability department started the conversation about Scope 3 emissions and data collection with some of the stakeholders operating from our airport. Although we were met with a variety of reactions, including some not unexpected resistance, following our first meeting, it is safe to say that many of our stakeholders appear to be eager to start providing the data required for us to be able to better map out Malta International Airport’s carbon footprint and eventually reach our net zero target.

I feel that collaboration is a crucial pillar of sustainability. The challenges the world faces are so complex that they may appear to be insurmountable if the sustainability department within a company or a small group of people were to try to address them single-handedly. Considering that our company directly employed 370 employees in 2022, the thousands of individuals that call Malta International Airport their workplace, and the hundreds of suppliers we work with on a yearly basis, there are numerous opportunities for collaboration for the greater good across the value chain.

We are trying to seize these opportunities through training and awareness-raising sessions, particularly in relation to the environment and our targets in this regard, as well as through the planned introduction of new environmental criteria at the tendering stage. This way we can have further reassurance that the people we work with share our values and our vision of a more equitable future based on environmental and social justice.

Besides internal collaborations, last year, we continued to partner up with external entities through the Malta Airport Foundation. While, as one of the islands’ key tourism players, we have always felt the responsibility to enhance and promote Malta’s tourism product, we also lack much of the expertise needed to safeguard our artistic, cultural and environmental heritage. Collaborations with restorers, one of the islands’ leading marine biologists, production houses, diving schools and Heritage Malta’s Underwater Cultural Heritage Unit throughout 2022 allowed us to contribute to the protection and promotion of aspects of our heritage, particularly the underwater world, we feel give us an edge over other Mediterranean destinations with a similar offering.

Our main business remains that of connecting the Maltese Islands to the rest of the world. However, our success in doing so in a way that truly brings benefits to the wider local community is very much intertwined with our success in meeting our sustainability obligations, be they environmental, social or economic. would like to take this opportunity to thank the Malta International Airport team for understanding that sustainability is not just a buzz word but a value that needs to inform our every action. I would also like to extend my gratitude towards stakeholders who have joined us or have shown their willingness to join us on our sustainability journey. For without people and their enthusiasm, we can only dream of achieving what may initially appear to be impossible: a fairer future for all.

It is always a pleasure to introduce our sustainability report, which goes a couple of steps further than our annual report to paint a clearer picture of our efforts to operate in a responsible manner while remaining profitable. One of the pillars upon which our report is based is transparency, which is why we disclose both our successes and shortcomings to the public, as well as have selected environmental, social and economic criteria audited independently.

ABOUT THIS REPORT

About This Report

This is Malta International Airport plc’s eighth sustainability report, covering the period between the 1st of January 2022 and the 31st of December 2022.

Malta International Airport plc has reported the information presented in the GRI content index on pages 90-93 for the period between 1 January 2022 and 31 December 2022 with reference to the GRI standards. The company’s initiatives and results are presented under the five United Nations Sustainability Development goals listed below, with the aim of showing that the company’s sustainability endeavours are being made in parallel with wider global efforts to secure prosperity for people and the planet now and for generations to come.

Responsible Production and Consumption

Good Health and Wellbeing Climate Action

REPORTING INFORMATION

(GRI 2-3: REPORTING PERIOD, FREQUENCY AND CONTACT POINT)

Malta International Airport plc publishes a sustainability report on an annual basis. The present sustainability report, which was made available to the public on www.maltairport.com in September 2023, covers the period between 1 January 2022 and 31 December 2022. Any questions about this report should be addressed to the communications department, which is responsible for the publication of the said report, on comms@maltairport.com.

Decent Work and Economic Growth

The Corporate Responsibility Committee, which is chaired by the Chief Executive Officer Alan Borg, engaged Pricewaterhouse Coopers (PwC) Malta, an independent assurance provider, to provide assurance with regard to the selected sustainability information marked with a tick for the year ended on 31 December 2022. This committee is responsible for approving KPIs and action plans in relation to the company’s environmental, economic and social performance. For the GRI content index, please refer to Appendix 4 on pages 90-93.

The company also publishes a separate annual financial report, in which its financial performance in presented in detail. This report is made available on the company’s website and sent out to shareholders every April in conformity with Listing Rule 5.56, which stipulates that the financial report should be made available to the public not later than four months after the end of each financial year. The company has been including environmental, social and economic highlights from its sustainability report in the financial report for the past eight years.

THE COMPANY’S MATERIAL IMPACT

Given that Malta International Airport’s impacts are far-reaching, in preparation for its first sustainability report, the company identified the most material aspects for the business (inside the organisation) and the airport’s stakeholders (both outside and inside the organisation). The aspects that were identified back in 2015 have remained the same for the purpose of this report.

40%

30%

VIE Malta Limited

A Shares

10% Public Shares A Shares

& C Shares B

Provided employees with the opportunity to learn new skills and broaden their horizons through

11,000 Hours of Training +

2022

Introduced empowerment as the fifth company value to demonstrate its commitment towards its people’s success

Through its CR Committee, donated over

€80,000

€38.9 M

Ended the year with a net profit of which included a tax credit of €12 million

€29.3

M

Distributed an economic value of in the form of operating costs, employee wages and benefits, and payments to government

758

Worked with a total of local suppliers

Climate Action & Responsible Production and Consumption

AN ENVIRONMENTAL OVERVIEW OF 2022

The landfill waste per passenger target

During 2022, the company continued to chart the course towards a more responsible operation whilst motivating employees to partake in Malta International Airport’s efforts to reach its environmental targets. To this end, during the year under review, the company introduced the second environmental performance target – the landfill waste per passenger – that is tied to the payment of a companywide bonus.

Training opportunities

Employees were given several training and education opportunities in relation to different sustainability-related topics. Members of the management team and the Environmental Working Group learnt more about the initiatives Malta International Airport could pursue to reach net zero as well as the Airport Carbon Accreditation (ACA) programme during a day-long workshop led by guest trainers. In 2022, the airport applied for and was successful in retaining its place at Level 2 (Reduction) of the ACA programme and signed the Toulouse Declaration on the decarbonisation of aviation, formalising its commitment to achieve its net zero target by 2050 at the very latest.

Malta International Airport was represented at a two-day conference organised by Reuters, which explored the challenges of sustainability reporting, new legislation and communicating environmental efforts to stakeholders. The year 2022 also saw the birth of GREENTalks; an educational initiative aimed towards making environmental topics more accessible to employees. The first GREENTalk, which was planned to coincide with the European Week for Waste Reduction, revolved around the topic of waste, the havoc single-use plastics have been wreaking on our planet and more sustainable alternatives.

A post-training survey disseminated among employees who attended the GREENTalk revealed that after the session the participants felt more aware of the dangers of irresponsible plastic consumption and disposal, as well as more empowered to change their everyday behaviours and encourage their peers to do the same.

Clean-ups and the sponsorship of Żiblu

During the European Week for Waste Reduction, the company organised a clean-up for employees in Birżebbuġa. Another two clean-ups were organised by the Malta Airport Foundation in collaboration with two local diving clubs. Through these seabed clean-ups, which took place in Senglea and Tigné, 3.6 tonnes of waste were collected, leaving the two places in a better state than they were found. Through its philanthropy fund, the company helped environmental NGO Żibel procure a RHIB, which has increased the efficiency of the organisation in collecting marine debris, particularly in rough weather conditions, and pulling ghost nets out of our waters.

An update from the apiaries and air quality tests

The year 2022 was not particularly good for the bees residing at Malta International Airport’s two apiaries due to hornet attacks that led to many honey bee losses. Hornet presence and attacks on honey bees have increased alarmingly across the Maltese Islands, with this rise being mostly attributed to urbanisation. Back in 2016, the company had embarked on the apiary project primarily as a means to track air quality but also to provide honey bees with suitable habitats as habitat loss due to urbanisation continues to be a threat for this species. While these attacks impacted honey yields, the usual samples were sent to a laboratory abroad for testing for heavy metals and polynuclear aromatic hydrocarbons (PAH). Test results once again showed that the concentration of heavy metals and PAHs was within the levels permitted by the Commission Regulation (EC) 1881/2006 setting the maximum levels for certain contaminants in foodstuffs.

CLIMATE ACTION

The State of the Climate (2022), published by the National Statistics Office, Malta, reports that, since 1952, Malta’s mean ambient temperature has risen by about 1.5°C, translating into an increase of 0.2°C per decade. The report also references two recent works conducted by Galdies and Vella (2019) and Galdies and Meli (2021) which show that future climate change, including increases in the air temperature, more heat extremes, fewer cold extremes and changes in precipitation trends, will negatively affect sectors such as agriculture, tourism and health. Additionally, organisations such as UNESCO have reported on the threat climate change is posing to world heritage sites across the world, most of which are in tourist destinations.

Given that tourism is one of the sectors that is expected to be impacted, and with the weather and culture being tourists’ top reasons for visiting the Maltese Islands between January and September 20222 Malta International Airport feels even more responsible to mitigate the company’s impact on the climate and safeguard the industry within which it operates3. In fact, in its Risk Report, the company acknowledges that its failure to achieve the climate-related targets it sets could impact the Maltese Islands’ appeal as a destination over the longer term.

While the company has been measuring – and endeavouring to mitigate - its Scope 1 and 2 emissions for the past years, in 2022, it began to collect data in relation to its Scope 3 emissions through the Work Commute Survey, which had a response rate of 82%. This survey has provided the company with information regarding the modes of transport used by MIA employees to travel to and from work, as can be seen in the infographic overleaf, the type of vehicle used and the distances travelled. This data will enable Malta International Airport to get a clearer picture of its carbon footprint and identify new opportunities to mitigate its indirect impact. At the beginning of 2023, the company also began to lay the groundwork for the eventual collection of Scope 3 data from airport stakeholders with a kick-off meeting held in January.

In parallel, the company continued to monitor developments in relation to the Fit for 55 package, particularly its implications for the aviation sector and operations at Malta International Airport.

United Nations Environment Programme (UNEP), United Nations Educational, Scientific and Cultural Organisation (UNESCO) and the Union of Concerned Scientists, World Heritage and Tourism in a Changing Climate (2016)

2 Malta Tourism Authority, Traveller Survey

3 GRI 201-2 Financial implications and other risks and opportunities due to climate change

HIGHLIGHTS FROM THE EMPLOYEE COMMUTE SURVEY

CARPOOLING (PASSENGER)

These figures represent 87% of the survey respondents who use one mode of transport only.

ENERGY CONSUMPTION AND MANAGEMENT 4

During the year under review, the amount of clean energy generated by Malta International Airport increased by 53.2% over the previous year to total approximately 3.2 million kWh. Just over one million kWh of this total were generated by the airport’s fourth photovoltaic system, which was installed and commissioned towards the end of 2021, with its full effect being captured for the first time last year.

As part of its energy-management efforts, the company replaced over 300 taxiway and taxilane light fittings with more efficient LED alternatives, with this exercise contributing to the registration of a drop of 6.5% in the electricity consumption of the airfield in 2022.

The company’s net electricity consumption, however, increased by 10.4%, largely as a result of the airport’s significantly busier operation. In fact, during the year under review, Malta International Airport’s passenger numbers increased by a noteworthy 130.3% over the previous year. Given that the increase in passenger numbers greatly outweighed the increase in the consumption of electricity, a drop of 52.1% in the net electricity consumption per passenger was registered, with the energy intensity standing at 1.96 kWh per passenger.

GRI 302-3 Energy Intensity

The above calculations use the official Enemalta Residual Mix Emission factor for Scope 2 emissions for 2021, namely 0.388 kg of CO /K. Updated emission factors for 2022 have not been received from Enemalta.

*This figure was restated using the latest emission factor provided by Enemalta.

More passenger traffic and aircraft movements also necessitated the more frequent use of the company’s operational vehicle fleet. This, together with longer generator testing times, led to an increase of 19.8% in the consumption of diesel, while the company’s petrol consumption decreased marginally by 0.6%.

4 For more detailed information about energy consumption, see GRI 302-1 on 79.

While fuel is a lesser contributor to the airport’s greenhouse gas (GHG) emissions than electricity consumption, the company still strives to lower fuel usage, mainly through its vehicle replacement programme. Through this programme, older vehicles owned by the company are gradually being replaced by hybrid or electric models. Presently, 27% of the company’s vehicle fleet consists of hybrid or electric vehicles.

The energy management initiatives undertaken during the year enabled the company to reach the GHG emissions intensity target of under 1.0 kilo of CO2 per passenger it had set at the beginning of 2022. The actual emissions intensity stood at 0.86 kilos of CO2 per passenger5 at the end of the year. The graph below shows Malta International Airport’s emissions intensity over the years, with the drop between 2022 and 2017 being highlighted due to the fact that in these two years passenger numbers were comparable.

EMISSIONS INTENSITY PER PASSENGER

WATER MANAGEMENT 6

Annual water targets

Water stewardship is an important environmental pillar for Malta International Airport, particularly considering that Malta has the lowest natural freshwater availability per capita of all the EU Member States and classifies among the top 10 water scarce countries in the world. Besides the fact that Malta has a very high population density, tourists, particularly in the peak months, put additional stress on the islands’ limited water resources.

With the aim to better manage the company’s consumption of this precious resource, the Environmental Working Group sets targets for water consumption and water consumption intensity at the beginning of the year. To establish targets that are realistic and attainable, the consumption of the previous year together with the passenger traffic forecast for the year in question are taken into consideration. While these considerations were factored into the setting of the water targets for 2022, the company failed to achieve its targets largely due to passenger numbers that exceeded initial expectations and below-average precipitation levels that impacted water harvesting.

Several initiatives that are planned for 2023 and 2024, including a study of how irrigation can be reduced through the replacement of aesthetic turf with indigenous vegetation, are expected to help the company optimise its water usage and reach its targets in the coming years.

Water sources and use

Malta International Airport’s main water sources are the Water Services Corporation (WSC) which supplies potable water that is mainly used in kitchenettes and hand basins inside washrooms, nonpotable groundwater supplied by a third-party provider and surface water that includes harvested rainwater7. Non-potable water is used primarily for irrigation purposes and to supply toilet flushings.

While there are several benefits tied to rainwater harvesting, such as lower utility bills and less frequent water delivery trips, in 2022, the airport harvested 31.7% less rainwater than it had harvested in 2021. This was largely due to a drier-than-average year, which produced just 369.4 mm of rainfall. This necessitated the purchase of larger volumes of non-potable water, translating into an increase of 90.9% over 2021.

Water testing

The company conducts several tests to determine the quality of storm water run-off on an annual basis, as the presence of certain pollutants and nutrients could have several negative impacts. In 2022, samples from six different airfield locations were tested for nitrates and petroleum hydrocarbons returning satisfactory results. Additionally, legionella testing was conducted twice on the primary water sources together with monthly testing for different bacteria, including E. Coli and Pseudomonas aeruginosa, to determine overall water safety.

369.4mm of rainfall in 2022

The rainfall amount for 2022 was much lower than the climate norm of 543 mm. In fact, 2022, went down on record as the seconddriest year the Maltese Islands have seen in the past decade. This led to the harvesting of around 32% less rainwater than in 2021.

91% increase in non-potable water

Due to the lack of rainfall, 73,732 m3 of non-potable water were purchased, translating into an increase of 90.9% over the volume purchased in 2021. Although the company does not have a log, it estimates that between 1,800 and 2,230 trips to the airport were made by the water supplier, contributing to the airport’s Scope 3 emissions.

119% increase in the volume of potable water used due to the busier operation

DID YOU KNOW?

Malta International Airport will be building its largest reservoir, having a total capacity of 10,000 m3, as part of the Apron X project. This means that this reservoir will hold around four times as much water as is needed to fill up an Olympicsized swimming pool!

WASTE MANAGEMENT 8

The introduction of the landfill waste per passenger target

In 2022, the company continued to work on waste management as its third environmental action area, mainly through more responsible procurement practices and the development of an indepth internal Waste Management Plan, which was updated last in April 2023. This document gives a detailed break-down of the airport’s different waste types and lists the contractors used for their disposal, as well as outlines several initiatives that could help the company continue to minimise its waste footprint and step up its separation efforts.

Following the introduction of organic waste bins in most of the kitchenettes used by airport employees and the La Valette lounge at the end of 2021, during the year under review, the company introduced the landfill waste per passenger metric to track the success of its efforts to better separate its waste. While the target stood at 0.20 kilos of landfill waste per passenger, the company was successful in closing 2022 with 0.11 kilos of landfill waste per passenger. A look at the data for 2022 shows that the airport’s share of waste sent to landfill shrank by 11.7% compared to 2019 as a result of its waste-related initiatives. The kilos of recycled waste, which includes organic waste, registered an increase of 162.4% compared to 2021.

Waste separation is a significant part of the sustainability efforts of the airport. Waste amounts have returned to pre-pandemic levels, and this has brought challenges in relation to waste separation and disposal, especially when liaising with our stakeholders to optimise waste separation processes.

Notwithstanding these challenges, we successfully managed to reduce landfill waste in 2022 and aim to achieve further reductions through the separation of key materials such as wood, metal, plastic and glass. We are also working on enhancing our organic waste separation efforts by involving food and beverage concessionaires and patrons.

Waste categories and spills 9

A detailed break-down of the airport’s waste and method of disposal for each waste category is shown in the table below. The increases in most of the waste categories can be attributed to the airport’s much busier operation during the year under review, more projects being undertaken compared to the previous year when only essential maintenance works were being carried out, or the company’s efforts to better separate waste.

In addition to the waste categories presented in this table, various minor fuel spillages as well as a few relatively serious fuel spillages were reported in 2022. Action was immediately taken to prevent any contamination and damage with the use of 31 kilos of absorbent and sand together with 198 litres of detergent.

Rosemarie Barbara Administrator Responsible for Waste Efforts & Member of the Environmental Working Group

Good Health and Wellbeing

SAFEGUARDING EMPLOYEES’ HEALTH AND WELLBEING

The Welfare Fund, the Wellbeing Programme and the Substance Abuse Policy Employees’ physical, mental, social and financial wellbeing has always been prioritised by the company. The company’s Wellbeing Programme and the Welfare Fund were established to ensure that wellbeing in all its forms can be safeguarded, allowing employees to enjoy a healthy and fulfilling life.

The Welfare Fund, which is financed by voluntary employee contributions that are then matched by the company, is a tool through which financial support is extended to employees, or their immediate family members, who request assistance to be able to cover medical expenses. The Welfare Fund Committe is responsible for assessing any requests received and deciding on their eligibility for funding.

While the Welfare Fund has the primary aim of easing some of the financial burden that stems from medical issues and subsequent treatment, the Wellbeing Programme encompasses a host of initiatives that promote wellbeing more holistically10. From complimentary gym sessions to mental health sessions, and free fruit delivered to the offices to an annual wellbeing allowance, this programme seeks to support employees in choosing healthier options and leading a more balanced life.

Well aware that when the going gets tough some people resort to alcohol or illicit substances to cope, the company has in place an Alcohol and Drug Abuse Policy. This policy, which was revised last in 2022 to establish the company’s position in relation to cannabis following the legalisation of its recreational use in Malta, outlines employees’ responsibilities in relation to alcohol and drug consumption as well as the company’s duty of care towards its employees.

By helping employees with a drug or alcohol problem get the support they need to kick the habit, the company believes that it would also be protecting the rest of the team and airport stakeholders from the dangerous behaviour that often stems from the irresponsible or prolonged consumption of substances.

Sports and Social Activities

Recognising the important role social interactions play in maintaining good mental and emotional health, the Sports and Social Committee organised several activities during the year under review. While some events were organised at the workplace, allowing employees to strengthen their relationships in a more laid-back environment, a number of activities were held away from the offices and were open to family members.

Mental health training

Through a collaboration with the Richmond Foundation, more than 700 hours of mental health training were delivered to employees, with a good portion of these hours being dedicated to mental health first aid. Through this training that familiarised participants with the ALGEE approach, 74 employees became certified mental health first aiders, equipped to identify and assist passengers or fellow employees experiencing anxiety, mental health crises, suicidal thoughts and epsiodes triggered by substance use.

During the course, we were presented with several situations, many of which I had actually encountered on the job. Mental health first aid helped me better understand how to connect with those who have mental crises or issues. Such training is important for improving teamwork and providing the best passenger experience at our airport.

Naomi Ruggieri Security Performance Leader & Mental Health First Aider

WORKING TOWARDS THE WELLBEING OF THE COMMUNITY

Understanding and addressing the community’s concerns

In 2022, the company organised three focus groups to gauge the community’s perception of the company, its corporate responsibility and environmental efforts, and the airport experience among other topics. In each one of the sessions, at least one participant hailed from a village in the vicinity of the airport or the south of Malta, where the company believes its operations11 have the biggest impact. These 2 pages present the main concerns raised during the sessions, which can have a direct or indirect impact on the quality of life of these stakeholders12. Given that most of the concerns raised were already known to the company, the actions taken or that are planned to be taken to address these issues are also outlined briefly13

02

EMISSIONS & AIR QUALITY

Current Situation

Besides its efforts to reduce its emissions14, the company monitors air quality, mainly through the testing of samples of honey produced on the airport apiaries for heavy metals and polynuclear aromatic hydrocarbons, which result from incomplete fuel combustion. Test results have consistently shown that the presence of these these pollutants in the samples analysed are well within the levels permitted by the EU. Additionally, these results are benchmarked against test results from honey collected from rural areas, showing that the pollutant levels are comparable

Future Action Points

To improve its air quality monitoring by measuring the presence of other pollutants, including carbon monoxide and nitrogen dioxide, the company is studying the feasibility of installing air quality sensors on the airfield.

Some participants said that by now they have become accustomed to aircraft sounds, while others identified noise pollution as an inconvenience and possible health hazard. Noise is a secondary environmental area for Malta International Airport, but several measures to mitigate noise pollution from aircraft, including noise preferential routes, environmental noise corridors and limitations on the use of the crosswind runway, are currently in place.

03

PUBLIC TRANSPORT, TRAFFIC AND PARKING

Current Situation

the recommendations that the Environmental Resources Authority (ERA) prepared specifically for Malta International Airport in the Noise Action Plan which covers the years 2019 to 2024.

Future Action Points

The company has little control over what bus routes are operated to and from the airport, public transport punctuality, and congestion around the airport campus. While participants understood this, they opined that more bike racks should be introduced on campus to make it easier for visitors and employees to use their bicycles to the airport. While there already are a number of racks, the company is currently looking into adding more racks at Park East. In relation to parking, which becomes an issue for neighbouring villages when the airport car parks are at capacity and vehicle owners start looking for parking spaces nearby, the company believes that Park East has alleviated this problem.

The company is committed to act upon

More parking spaces will be introduced on the airport campus as part of the SkyParks 2 project.

Managing an emergency scenario

Besides the concerns identified by the focus group participants, the company recognises the impact that an airport crisis could have on its neighbouring villages. In this regard, the company continuously works towards further improving its emergency preparedness and ensuring that key employees and stakeholders are familiar with the emergency response plans in place. During 2022, the Terminal Emergency Planning Committee (TEPC)15 met four times, organised 13 emergency drills, and sought to address any shortcomings identified during these exercises as well as in real-life situations.

Apart from these routine drills, Malta International Airport spearheaded a full-scale emergency exercise in line with the European Aviation Safety Agency’s (EASA) regulatory requirements. Over 200 participants from Malta International Airport and entities, such as the Civil Protection Department, the Armed Forces of Malta and Mater Dei Hospital, participated in this exercise whose main aim was to test the response of all the stakeholders to a simulated aircraft accident.

Philanthropy for community wellbeing

The company receives several requests for financial support from a number of individuals and organisations, which are evaluated by the Corporate Responsibility Committee. During the year under review, more than €80,000 were donated towards different causes, initiatives and events, all of which the members of the aforementioned committee believed would add value to the community, alleviate the hardships of certain groups of people, and improve the quality of life of persons with disabilities or suffering from ill health. The donations ranged from smaller ones that supported some of the airport’s neighbouring communities organise events and fund-raising activities to larger donations, one of which helped an organisation procure equipment for a rehabilitation centre for people with disabilities.

Moreover, through employee-driven initiatives, the company collected just over €7,300 that were donated to the chosen charity of the year, Puttinu Cares, which offers a holistic care approach to families of children suffering from cancer. The airport team also organised the third Christmas food drive, with the collected items being donated to the St Jeanne Antide Foundation.

15 In 2022, the TEPC was composed of 11 members, representing 3% of the company’s workforce.

DECENT WORK AND ECONOMIC GROWTH

Decent Work and Economic Growth

DECENT WORK

Safe workspaces for better levels of productivity

Work productivity brings several benefits to both employees and employers such as job satisfaction and higher levels of engagement, making it an important pillar of decent work. Workspaces16 that are free from risks, practices and behaviours that can hinder productivity remained a priority for Malta International Airport, in line with the company’s commitment to maintain a healthy and safe workplace as stipulated in the internal Human Rights Policy17

During the year under review, the Health and Safety Department ran a health and safety survey for the first time with the aim of understanding employees’ satisfaction with the company’s initiatives in this regard. Ninety-four per cent of the respondents stated that they were very satisfied or satisfied with the company’s efforts to protect the team’s health and safety, while the rest of the respondents were either dissatisfied or did not have an opinion on the matter.

The company’s Occupational Health and Safety Committee, whose members are elected by peers in elections organised in line with the Occupational Health and Safety Authority Act of the Laws of Malta18, met four times during the year under review to discuss potentially unsafe practices and spaces and propose solutions that benefit employees and stakeholders. Eighty-five per cent of the respondents to the above-mentioned survey expressed strong agreement or agreement with the statement: I feel that employees’ OHS representatives play a critical role in providing me with the assurance that any OHS matters are being addressed.

Thirty-three per cent of the company’s total training hours for 2022 were dedicated to topics related to safety, including occupational health and safety. Safety training ranged from the delivery of basic first aid training to radiation safety awareness training to personnel who use X-ray screening equipment.

The creation of safe workspaces goes beyond the elimination of physical hazards and unsafe practices. The company17 has in place documents, such as the Bullying and Harassment Policy and the Disciplinary Procedure, that help in ensuring that practices and behaviours that inflict psychological harm on or belittle employees are not tolerated and are punished immediately.

Training and transition assistance initiatives19

A total of 11,463 hours of training were delivered to the team, supporting employees in perfecting existing skills and learning new ones to be able to respond to new challenges and requirements at work while progressing in their careers. In this regard, the company’s training programme bore the desired results, with 88% of the respondents to the Annual Employee Survey agreeing that their job is challenging but that they have the right skills for it. To allow employees to build more confidence in their abilities, some team members were given the opportunity to become trainers and impart the knowledge and expertise garnered over the years with their colleagues. Below is a break-down of the company’s training hours per gender and employee category20.

16 For work-related injuries and work-related ill health, refer to GRI 403-9a and 403-10a on 86.

17 GRI 2-23 Policy commitments. As demonstrated on this page, the company has in place several policies that seek to safeguard the best interests of its employees while making clear their obligations towards the company and their peers. Additionally, the Business Ethics Policy, which clarifies what the company considers to be ethical, honest and legal in relation to all business dealings, is an important document in this regard.

18 GRI 403-4 Worker participation, consultation, and communication on occupational health and safety

During the year under review, the company continued to offer soon-to-be-retirees the opportunity to participate in the Leaving Work Support Programme, which is offered in collaboration with the Richmond Foundation. Despite the fact that no retirees made use of this programme in 2022, it remains an important tool in giving employees who are close to retirement the support and skills needed to make a seamless transition into a very different way of life.

While there are currently no formal programmes for students and apprenticeships, the company seeks to bring on board a number of apprentices and student workers each year. The primary aim of this initiative is to support young people in making a smoother transition from the educational institution they would be attending to the workplace upon completion of their studies while getting them acquainted with how Malta International Airport operates. In 2022, six students who were following courses in light vehicle maintenance, electrical systems and mechanical engineering at the Malta College of Arts, Science and Technology (MCAST) got hands-on work experiences that were directly related to their fields of study.

Internal mobility and empowerment

For the second year running, the company established the target to fill 60% of vacant leadership positions through internal promotions in an effort to reward deserving employees and retain valuable institutional knowledge. While this target was narrowly missed as 58% of the company’s leadership positions were filled through internal mobility, the Annual Employee Survey revealed that more than 80% of the respondents believed that the company supports professional development and provides ample opportunities for career progression.

The company continued to cement its committment towards empowering its people through the introduction of the fifth company value – empowerment.

The right to collective bargaining, non-discrimination and diversity

At the end of the year, the company’s headcount stood at 370 employees, 72% of whom were represented by one of two unions and covered by Malta International Airport’s collective agreement. Employees’ right to join a union of their choice without the fear of intimidation is safeguarded through the company’s Human Rights Policy, which also stipulates the company’s obligation to enter into meaningful discussions with the unions representing its team. In 2022, the company had many such discussions with the two unions representing its employees as a new collective agreement providing additional benefits, new leave categories and more competitive salary packages was being drafted. The new collective agreement came into effect in January 2023 and will be valid until 2027.

The company’s Human Rights Policy also lays down Malta International Airport’s obligation to promote diversity21 among employees that are hired directly by the company and stakeholders.

Despite its commitment to create a diverse workplace through the provision of equal opportunities to all irrelevant of their gender, race, colour and national origin, in 2022, 82%22 of the company’s senior management, including the Chief Executive Officer, were hired from the local community. While diversity lends new strengths and perspectives to a company, having locals in top leadership positions has several benefits as well. These include benefits for the local economy, a better understanding of the local culture that leads to more affinity with local communities, and higher levels of trust in the company from investors in certain instances.

Team Snapshot 370

EMPLOYEES AT YEAR END

233 137

72%

of Senior Management were locals

39 9

82% Average Age of the Team

Covered by the Company’s Collective Agreement Average Length of Service

12.1% Turnover Rate

years years

Freedom of expression and active participation

Several internal documents ensure that employees’ rights to express themselves freely and participate in the company’s decision-making processes are safeguarded. These documents are complemented by the initiatives described below.

ECONOMIC GROWTH

The company’s financial performance during the year under review

The year 2022 marked a turning point in Malta International Airport’s journey of recovery. While operations during the first quarter of the year remained slow due to travel restrictions, passenger traffic started gaining momentum in April, with the company recovering 80% of its record passenger numbers by the end of the year.

The Annual Employee Survey

Gives employees the opportunity to submit their feedback anonymously regarding their job, their department, their manager and the company in general.

76% response rate in 2022

Malta International Airport’s positive traffic results contributed to a significantly improved financial performance, which saw the company close the year with revenues amounting to €88.0 million. While €58.3 million of this total stemmed from aviation-related activities, with this segment registering an increase of 110% over the previous year, €29.7 million were generated through non-aviation activities, including the company’s VIP products, car parks and rents.

My CEO Time

One-on-one sessions through which employees get the opportunity to meet the CEO and discuss with him ideas and concerns. A number of employees are invited for these sessions by the CEO on a yearly basis.

8 employees invited for a My CEO Time session in 2022

Bolstered by improved revenues, the company’s direct economic value increased by 85.1% over the previous year to total €88.4 million. More information on the economic value distributed and retained is presented in the table below23

Employee Focus Groups

Led by the Operations Quality Team, employee focus groups allow participants to discuss the premises, processes and people at Malta International Airport whilst brainstorming ideas of how these aspects could be further improved. Suggestions made by participants are presented to the relevant departments to be actioned.

18 focus groups organised in 2022 with the participation of 15 employees

The Committees

The company has 10 committees, some of which are chaired by the Chief Executive Officer, in which topics as varied as risk management and corporate responsibility efforts are discussed by members. For a list of the company’s committees, refer to page 87.

More than 50 employees had a seat on one or more of these committees in 2022

The company’s net profit for the year under review amounted to €38.9 million, which total included a €12 million tax credit awarded to the company in compensation for the losses sustained during the COVID-19 pandemic. Between January and May 2022, the company also continued to benefit from the COVID-19 Wage Supplement, under which scheme it was eligible to receive a monthly wage supplement of €800 for every full-time employee24

The company’s financial recovery in 2022 gave Malta International Airport the confidence to announce a €175 million investment plan in the airport campus at the beginning of 2023, followed by the announcement that it would be paying a net dividend of €0.12 cents per share for the first time in three years.

The company’s suppliers and stakeholders25

Throughout the year under review, Malta International Airport worked with 900 suppliers, who benefitted from a total spend of €43,516,561. The services rendered by these suppliers varied greatly, with some suppliers being engaged by the company to deliver training to employees, others to support it in maintaining its infrastructure and carrying out upgrades, and others to deliver services related to cleaning, security, auditing and technology. A major change occurred in November 2023, when Air Malta took the decision to focus its business on airline operations and divest its ground handling operations to a new ground handler, Aviation Services Handling (ASH) Ltd.

While the company is committed to providing equal opportunities to all potential partners, local suppliers benefitted from Malta International Airport’s largest spend, or 91% of the above-mentioned total, for yet another year. There are several benefits of having a largely localised supply chain, including support of the community within which the business operates, incurring lower costs and having a lower impact on the environment. The company looked beyond Malta’s shores for specialised services and products that were not available locally, resulting in a spend of €3.8 million on EU and non-EU suppliers.

Screening of suppliers and products26

Currently the company does not screen new suppliers entering its supply chain. Recognising the importance of working with suppliers that share the same values as Malta International Airport in relation to the environment and society’s wellbeing, the Procurement Department is currently in the process of drafting an environmental clause that will be included in certain tenders to serve as one of the pillars, alongside the technical and financial aspects of the tender, upon which a tenderer’s submission is adjudicated.

Additionally, although the company does not have official guidelines for the screening of products, product data sheets are analysed at purchasing stage to ensure that the most energy-efficient equipment is procured.

26 GRI 414-1, GRI 414-2, GRI 308-1 and GRI 308-2 New suppliers that were screened using social/environmental criteria and Negative social/ environmental impacts in the supply chain and actions taken

INDUSTRY, INNOVATION AND INFRASTRUCTURE

Industry, Innovation And Infrastructure

MALTA INTERNATIONAL AIRPORT AS A KEY PLAYER IN THE LOCAL TOURISM INDUSTRY

The airport’s journey of recovery in 2022

Being a key player in the local tourism industry, Malta International Airport continued to prioritise the re-building of the Maltese Islands’ route network together with the Ministry for Tourism, the Malta Tourism Autority (MTA)27 and other industry stakeholders. With a total of 31 airlines connecting the Maltese Islands to 107 airports in 36 different countries in 2022, Malta International Airport was successful in recouping 82% of its pre-pandemic connectivity. Some of the most important traffic developments included the return of Air Serbia with bi-weekly flights to Belgrade, the operation of biweekly flights to Stockholm that reestablished a link with Sweden, and the resumption of daily flights operated by Emirates.

While Malta International Airport worked closely with all its airline partners throughout the year, it monitored particularly closely the situation with Air Malta, which is currently going through a challenging period. While the airline enjoyed the second-highest market share during the year under review, in April 2023 it was announced that the Maltese Islands would have a new carrier by the end of the year, as the European Commission appeared to be gravitating towards the rejection of the Maltese Government’s request for a state aid injection.

By the end of the year Malta International Airport had welcomed 5,851,079 passengers, marking a recovery of 80% of its record 2019 traffic. Despite the slow start to the year and the late removal of travel restrictions locally compared to other destinations, this recovery rate was in line with the average recovery reported by European airports according to data released by Airports Council International. The strongest monthly recovery rates were registered in November at 88% and December at 88.3%, while the highest seat load factor for the year was reached in August at 90.4%. This was also Malta International Airport’s highest-ever seat load factor.

Italy was the top driver of passenger traffic during the year under review, followed by the United Kingdom, France, Germany and Poland. While France (+26.2%) and Poland (+33.8%) registered significant growth and both surpassed their respective 2019 results, passenger numbers from the United Kingdom (-38.1%) and Germany (-37.7%) remained significantly below 2019 levels. On the other hand, Italy’s recovery was much more promising, with passenger numbers to and from this market remaining only 8.6% below pre-pandemic levels.

Malta’s National Statistics Office reported that 2.28 million tourists visted the Maltese Islands in 2022, with this figure remaining below 2019’s record of 2.77 million tourists. The tourist expenditure for the year under review was estimated at €2.0 billion.

27 Malta International Airport’s CEO sits on the board of this authority. For a full list of the airport’s memberships in national and international associations, see GRI 102-13 on 73.

Investing in the Maltese Islands’ tourism product Malta International Airport established the independently administered Malta Airport Foundation in 2014, whose aim is to invest in and promote the Maltese Islands’ environmental, cultural and artistic heritage. The establishment of the Foundation was born out of Malta International Airport’s sense of duty towards contributing to an improved tourism product, which gives the Maltese Islands an edge over competitor destinations to attract more quality visitors.

Following a pandemic-induced lull in activity, the year 2022 - particularly the second half - was a busy one for the Malta Airport Foundation as one project was completed within the envisaged timeline and new ones were announced.

August 2022

In the third quarter of 2022, the Foundation unveiled a newly restored Mattia Preti painting which hangs inside the Saint Catherine of Alexandria Parish Church in Żurrieq. Through the conservation and restoration process, which had been initiated in 2021, Mattia Preti’s original paint layer, which had been concealed through different interventions carried out along the years, has been recovered. Additional work was carried out on the reverse side of the painting in order to provide the painting, which measures four metres by two metres, with adequate stability and support.

September 2022

The Foundation’s next initiative for the year under review was the organisation of its annual seabed clean-ups in partnership with two local diving schools. The locations chosen for 2022 were Tigné, which is a local tourist hot-spot, and Senglea in the south-eastern region of the islands. A total of 3.6 tonnes of waste were elevated from the seabed, leaving these two locations a little cleaner than they were found.

October 2022

The Foundation announces the mini documentary series Submerged World

Given that the Maltese Islands’ underwater offering is a very important part of Malta’s tourist offering, in 2022, the Foundation decided to sponsor a mini documentary series which shines the spotlight on six of the islands’ best-loved wrecks. The series kicked off with an instalment on the tanker Um El Faroud, which was scuttled back in 1998, becoming one of the Maltese Islands’ first artificial reefs and diving attractions. The second episode, which takes viewers for a vitual tour of the decks of the HMS Maori, was released in the first quarter of 2023, while the other epiodes are currently in production.

November 2022

The Foundation teams up with Heritage Malta in a world-first endeavour

Hot on the heels of the launch of Submerged World the Foundation announced a collaboration with Heritage Malta on the declaration of the world’s first deep-water archaeological park. The park, which is an underwater site 105 metres below sea level and spanning 67,000 m2 of ancient artefacts dating back 2,300 years, is a world first given its depth combined with the site’s unique composition. The Foundation will be supporting Heritage Malta’s Underwater Cultural Heritage Unit in preserving and documenting the site while promoting it among technical divers and researchers.

The Foundation unveils a newly restored Mattia Preti painting

The Foundation organises its annual seabed clean-ups

Moulding the guest experience around the collection of feedback

A great experience on the Maltese Islands starts right at the airport, which is why Malta International Airport continued to work towards further elevating the guest experience. The company strove to achieve this goal through more front-liner training, upgrades and maintenance to the terminal building, and the collection of feedback to gauge guest sentiment about their airport experience, together with the organisation of passenger activations throughout the year.

While the company collects feedback through several different platforms, including its website, social media channels and the Secret Passenger Programme, one of the most noteworthy improvements of 2022 in this regard was the introduction of feedback collection kiosks located across the terminal. These digital kiosks are providing guests travelling through the airport with a more user-friendly and convenient means through which to give feedback than the previously used paper-based comment cards, while making it easier for back-end users of the system to analyse and disseminate feedback to the relevant departments.

Another first for 2022 was the organisation of three customer focus groups, which were led by the Operations Quality Department. Through these focus groups several areas for improvement were identified, with some of these improvements being implemented in 2022, including the introduction of additional signage and the revision of certain processes for better efficiency, and others set to be implemented in 2023.

Malta International Airport gauges the success of its efforts to deliver a five-star service to its guests through its participation in Airport Council International’s Airport Service Quality survey, through which feedback is collected from departing guests. In 2022, Malta International Airport ranked among the top European airports of its size for the fifth year running, with an overall satisfaction score of 4.41. Among the key performance indicators on which Malta International Airport achieved a higher score than the European average, were the courtesy and helpfulness of the security staff, the cleanliness of the terminal and the availability of washrooms.

Apart from serving as an efficient and convenient platform for the collection and analysis of guest feedback, the feedback kiosks have allowed us to eliminate the use of hundreds of printed comment cards, which were previously used to collect feedback. The old approach required the manual sorting and inputting of our guests’ feedback in a dedicated system making for a very timeconsuming process, which has been optimised through the introduction of these kiosks.

INFRASTRUCTURE AND INNOVATION28

The inauguration of the new food court

Malta International Airport’s €2 million investment in the complete overhaul of the airport food court was carried out with the two-fold aim of further improving the guest experience and strengthening the company’s retail and property segment, which is an important revenue generator.

The new food court did not only introduce four new eateries alongside existing tenants KFC and Burger King at Level -1 of the terminal building but also gave the area an elevated aesthetic together with better seating options. In designing the new food court, the design and architecture firm that was entrusted with the project also took environmental considerations to support Malta International Airport in better managing the lighting and temperature within the area.

Locals who participated in a number of brand focus group organised in 2022 were aware of the company’s investment in the food court, hailing it as an improvement not just for the airport campus but also for the inhabitants of the airport’s neighbouring villages who have access to more restaurants and entertainment options thanks to this project. On the other hand, some other participants were of the opinion that, despite the revamp of the airport food court, the food offering at Malta International Airport has remained quite limited.

The Apron X project

The last quarter of 2022 saw the company kick-start excavation works on Apron X, which is one of Malta International Airport’s most important and ambitious projects of its five-year investment plan.

The €40 million project will see the development of an area measuring around 100,000 square metres, which will significantly improve the airport’s aircraft parking capacity and its ability to better handle mixed-fleet operations, particularly during peak hours in summer. Apron X will introduce new parking stands that can accommodate either seven Code C or three Code E aircraft, with the former being the more common aircraft type to land at Malta International Airport, in addition to 20 existing stands available on Aprons 8 and 9.

Besides equipping Malta International Airport with better aircraft parking capacity, the multi-million project will include the construction of a new taxiway, which will improve accessibility to the new apron, and the development of a staging area in a strategic location, housing facilities for essential ground handling operations. These ancillary facilities will complement the main development in contributing to a smoother and more efficient operation on the ground, whilst allowing Malta International Airport to eye further traffic and commercial growth.

By the end of March 2023, more than 370 individuals had access to this site where they are offering their services as masons, electrical and mechanical engineers, heavy plant operators and drivers and project managers, amongst other things. It was encouraging to note that many of the participants in the aforementioned brand focus groups were aware of the Apron X project, deeming it a very important money and employment-generating investment.

Alexia Frendo Marketing & Events Specialist

The following reporting criteria are based on the new GRI sustainability reporting guidelines.

% of procurement budget used for significant locations of operation that is spent on suppliers local to that operation (such as percentage of products and services purchased locally).

1. Indirect energy consumption in kWh (electricity)

2. Direct energy consumption in litres (Fuel: Diesel & Petrol)

was extracted from the Group’s purchase ledger, adjusted to include accruals, and is inclusive of VAT

1. Electricity consumption was based on MIA meter readings and supplier invoices (net of metered energy consumption by

1. Water consumption was based on MIA meter readings and supplier invoices

2.

for groundwater extraction was based on third party invoices and meter readings

3.

Independent practitioner’s limited assurance report on the identified sustainability information in Malta International Airport plc’s 2022 sustainability report

To the Corporate Responsibility (CR) Committee of Malta International Airport plc

We have undertaken a limited assurance engagement in respect of the selected sustainability information listed below and identified with a in the Malta International Airport plc (‘MIA’) sustainability report for the year ended 31 December 2022 (‘2022 Sustainability Report) (‘Identified Sustainability Information’).

Identified sustainability information

The Identified Sustainability Information for the year ended 31 December 2022 is summarised below:

Economic indicators, including:

• GRI 202-1: Ratio of standard entry level wage by gender compared to the local minimum wage;

• GRI 203-1: Infrastructure investments and services supported; and

• GRI 204-1: Proportion of spending on local suppliers.

Environmental indicators, including:

• GRI 302-1: Energy consumption within the organisation;

• GRI 303-3, GRI 303-4 and GRI 303-5: Water withdrawal, discharge and consumption;

• GRI 305-1 and GRI 305-2: Greenhouse gas emissions (Scope 1 and 2) (‘GHG’); and

• GRI 306-3, GRI 306-4, and GRI 306-5: Waste generated, waste diverted from disposal and waste diverted to disposal.

Social indicators, including:

• GRI 401-1: New employee hires and employee turnover;

• GRI 403-9 and 403-10: Work-related injuries and work-related ill health;

• GRI 404-1 and 404-3: Average hours of training per year per employee and percentage of employees receiving regular performance and career development reviews; and

• GRI 405-1 and 405-2: Diversity of governance bodies and employees and ratio of basic salary and remuneration of women to men.

Our assurance relates to information pertaining to the year ended 31 December 2022 only. We have not performed any procedures with respect to any other elements included in the 2022 Sustainability Report and, therefore, do not express any conclusion thereon.

CRITERIA

The criteria used by MIA to prepare the Identified Sustainability Information is set out in Appendix 1 ‘Criteria for reporting on select Sustainable Information - 31 December 2022’ on pages 66 and 67 of the 2022 Sustainability Report (the “Criteria’).

MIA’S RESPONSIBILITY FOR THE IDENTIFIED SUSTAINABILITY INFORMATION

MIA is responsible for the preparation of the Identified Sustainability Information in accordance with the Criteria and the GRI Sustainability Reporting Standards (the ‘GRI Standards’). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation of Identified Sustainability Information that is free from material misstatement, whether due to fraud or error.

MIA is also responsible for maintaining responsibility for the content of the 2022 Sustainability Report, including responsibility for determining the material aspects (as defined in GRI Standards), indicators (as so defined) and other content of the 2022 Sustainability Report; and retaining sufficient and appropriate evidence to support the aforementioned.

INHERENT LIMITATIONS

The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different, but acceptable, measures and measurement techniques and can affect comparability between entities. In addition, GHG quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of different gasses.

OUR INDEPENDENCE AND QUALITY MANAGEMENT

We have complied with the independence and other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards), issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

OUR RESPONSIBILITY

Our responsibility is to express a limited assurance conclusion on the Identified Sustainability Information based on the procedures we have performed and the evidence we have obtained. We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information', and, in respect of greenhouse gas emissions, International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements, issued by the International Auditing and Assurance Standards Board. These standards require that we plan and perform this engagement to obtain limited assurance about whether the Identified Sustainability Information is free from material misstatement.

A limited assurance engagement involves assessing the suitability in the circumstances of MIA’s use of the Criteria as the basis for the preparation of the Identified Sustainability Information, assessing the risks of material misstatement of the Identified Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the circumstances, and evaluating the overall presentation of the Identified Sustainability Information. A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both the risk assessment procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks.

The procedures we performed were based on our professional judgment and included inquiries, observation of processes performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with underlying records.

Given the circumstances of the engagement, in performing the procedures listed above we:

• made inquiries of the persons responsible for the Identified Sustainability Information;

• obtained an understanding of the process for collecting and reporting the Identified Sustainability Information;

• performed limited substantive testing on a selective basis of the Identified Sustainability Information to check that data had been appropriately measured, recorded, collated and reported; and

• considered the disclosure and presentation of the Identified Sustainability Information.

Our procedures were limited to the Identified Sustainability Information, and we have not performed any procedures in relation to any other GRI disclosures included in the 2022 Sustainability Report, including the completeness thereof.

The procedures performed in a limited assurance engagement vary in nature and timing, and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance opinion about whether MIA’s Identified Sustainability Information has been prepared, in all material respects, in accordance with the Criteria.

LIMITED ASSURANCE CONCLUSION

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the MIA’s Identified Sustainability Information for the year ended 31 December 2022 is not prepared, in all material respects, in accordance with the Criteria.

RESTRICTION ON DISTRIBUTION AND USE

This report, including the conclusion, has been prepared solely for the CR Committee of MIA as a body, to assist them in reporting on MIA’s sustainable development performance and activities. We permit the disclosure of this report within the 2022 Sustainability Report, to enable the CR Committee to demonstrate that it has discharged its governance responsibilities by commissioning an independent assurance report in connection with the 2022 Sustainability Report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the CR Committee as a body and MIA for our work or this report save where terms are expressly agreed and with our prior consent in writing.

GENERAL DISCLOSURES

This appendix includes additional details on certain general, economic, environmental and social disclosures.

Disclosures 2-7 Employees & 2-8 Workers who are not employees

Disclosure 2-28 Membership Associations A list of the main memberships of industry and other associations, and national or international advocacy organisations

• Participant in Airport Council International’s Airport Service Quality Survey (joined in 2006)

• Participant in Airport Council International’s Airport Carbon Accreditation Programme at the Mapping Level (joined in 2016 and remained at Level 2 in 2022)

• Participant in Airport Council International’s Customer Experience Programme (joined in 2019 and remained at Level 3 in 2022)

• Signatory to Airport Council International’s NetZero 2050 Resolution (2019)

• Endorsed the Toulouse Declaration (2022)

• Member of the Malta Hotels & Restaurants Association (MHRA)

Disclosure 2-29 Approach to stakeholder engagement

Stakeholder Group Type of Engagement Frequency of Engagement Key Interests

Tenants Meetings with main operators Monthly Passenger experience Traffic performance

Marketing incentive meetings Quarterly Ad hoc meetings As needed

Financial performance

Operational issues

Business continuity & long-term planning

Customer feedback & consumption trends

Company’s recovery from the impact of COVID-19

Suppliers Day-to-day communications As needed Airport safety & security

Key supplier meetings Monthly Presentations (pax. survey) Biannual

Feedback & improvements meetings (fuel services provider)

Monthly

ASQ feedback As needed

Feedback on exisiting procedures & airline comments (MATS)

Ethics & integrity

Health & safety Service performance

Supply chain mangement

Procurement practices

Stakeholder Group Type of Engagement

Regulators & Committees

(incl. Customs, Immigration, Airline Operator Committee, Airport User Committee)

Frequency of Engagement Key Interests

Aircraft and passenger handling meetings (Airline Operator Committee)

Terminal and airfield operations (Airport User Committee)

Day-to-day communications on aviation & airport security (OMAS/AVSEC)

Airport emergency planning meetings (AFM, CPD, MDH, Malta Police)

Bimonthly Capacity constraints

Biannual

As needed

Airport planning, investments & development

Bimonthly

Ground handling services Occurrence report meetings Monthly Capacity constraints Airport planning

Resource allocation Quarterly

Customer experience improvements Quarterly

Aircraft turnaround meetings & other operational requirements Quarterly

ASQ feedback Quarterly

Staff training & airport competency (PRM providers) Bimonthly

Operational efficiency

Safety & security

Passenger experience Company’s recovery from the impact of COVID-19

Tourism Bodies MTA & MHRA Meetings Monthly Connectivity & network development

Day-to-day communications As needed Conferences Quarterly

Airline satisfaction

Top markets

Passenger experience Company’s recovery from the impact of COVID-19

As needed

Aerodrome Regulatory Meetings (TM-CAD) Bimonthly

ASQ feedback As needed

Resource allocation meetings As needed

Employees Employee Survey Annual Occupational health & safety

Internal newsletters Weekly

Employee magazine (Connections) Annual / biannual

Exit interviews As needed

Performance reviews Depending on department but at least annual

Occupational Health & Safety Committee Bimonthly

Departmental meetings Quarterly

Employee Focus Groups As needed

Communications as part of operational management Daily

Digital noticeboards Updated as needed

Intranet (Compass) Updated as needed

My CEO Time By appointment as needed

Business continuity & strategic planning Investments

Staff remuneration, employee wellbeing & benefits Job satisfaction New employees & reorganisations Route development Operational issues Company’s recovery from the impact of COVID-19

Disclosure 2-16 Communication of critical concerns

As per the company’s Collective Agreement, employees can report grievances through Clause 39 of the Grievances Procedure. No such grievances were reported during the year under review.

GRI 202-1 Ratio of standard entry wage level by gender compared to the local minimum wage Entry level wages include only staff falling under the Collective Agreement, thereby excluding special workers, professionals and management. All female staff in technical roles fall within the excluded categories.

GRI 203-2 Significant indirect impacts

Source: Malta International Airport: Economic Impact Assessment, January 2021.

ENVIRONMENTAL

GRI 302-1 Energy consumption within the

*MIA’s operation includes energy consumption from airfield, terminal operations, multi-storey car park, the service station and SkyParks Business Centre. Additionally, MIA’s airfield has a separate PV system whose electricity is sold directly to Enemalta under a FIT agreement, but does not directly consume this energy.

303-4 Water discharge

Explanation: This represents the water discharged back to the WSC (through the sewer system) as well as the net potable water supplied from the WSC and the portion of groundwater and surface water pumped to the terminal building and used for the flushing of the toilets and for other cleaning operations.

GRI 303-3 Water withdrawal by source

Explanation: This represents all the water utilised by the organisation (net of water sold/used by third parties) including supplied by the WSC, harvested rainwater and borehole water delivered by a thirdparty contractor.

Explanation: Finally, water consumption is calculated by subtracting the water discharged from the total water withdrawn.

GRI 305-1 Direct (Scope 1) GHG emissions

SOCIAL

GRI 205-1 Operations assessed for risks of corruption

The company’s risk register includes a section that which presents a potential risk of corruption.

Department Procurement

Key Business Function Procurement Management

Main Objective Ethical conduct in supplier relationships

Key Risk Bribery / corruption of Malta International Airport officials in the award and administration of supplier Purchase Order to contracts.

GRI 205-3 Confirmed incidents of corruption and actions taken

The company has never been involved in allegations relating to corruption and no incidents of corruption have been reported or confirmed.

*2021 calculations are based on the emission factors published by the Defra department for that reporting year. The 2021 emission factors were 2.675 kg of CO2/litre and 2.272 kg of CO2/litre for diesel and petrol respectively.

GRI 305-2 Energy Indirect (Scope 2) GHG emissions

*The above calculations/results use the official Enemalta Residual Mix Emission factor for Scope 2 emissions for 2021, namely 0.388 kg CO2/kWh. Updated emission factors for 2022 have not yet been received from Enemalta. **These figures were restated.

GRI 307-1 Non-compliance with environmental rules and regulations

No fines or non-monetary sanctions for non-compliance with environmental laws and regulations were imposed on Malta International Airport, and no complaints regarding environmental issues were reported to Malta International Airport during the year under review. Data regarding regulatory visits and subsequent correspondence has yet to be compiled.

GRI 206-1 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices

There were no antitrust or anti-competitive actions involving MIA during the reporting period.

GRI 401-1 Total number of new employees hired and employee turnover by age group, gender and region

The figures presented above exclude summer workers and interns.

GRI 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation

Seventy-two per cent full-time employees were covered by the Collective Agreement in 2022. The Collective Agreement splits employees into three categories: Administration, Technical and Operations. All employees in the three categories enjoy the benefits listed under 'Collective Agreement Employees' in the table below. Part-time employees are also eligible for these benefit.

GRI 404-3 Percentage of employees receiving regular performance and career reviews by gender and by employee category

*One should note that out of 370 employees, only 298 were eligible to receive a performance appraisal.

Disclosure 102-18 Governance Structure ⁄ GRI 405-1 Diversity of governance bodies and employees

The company has 11 different committees and executive bodies in place that govern different aspects that are of interest to the company. These committees and bodies convene regularly, creating a space where employees from different departments shares their skills, expertise, and concerns.

*This total excludes two rotating guest members who represent the Security Services and Customer Services teams for better representation. New members joined three of the above-mentioned committees, replacing members who left the company or were on maternity leave.

GRI 401-3 Parental Leave

Parental leave is not a popular leave type among airport employees, given that employees are given the opportunity to take up to a year of unpaid special leave after maternity leave. No employees availed themselves of parental leave during the year under review.

GRI 405-1 Breakdown of employees per employee category according to gender, age group and minority group membership, and other indicators of diversity.

GRI 410-1 Security personnel trained in human rights policies and procedures

During the year under review, the company did not organise any training programmes on human rights policies and procedures concerning aspects of human rights that are relevant to operations.

GRI 415-1 Political Contributions

As stipulated in the Company’s Business Conduct & Ethics Policy, this is not acceptable, and it is specified in Point 3.1.3 of same policy that:

“Political contributions on behalf of MIA to a political campaign, political party or to any activity in support of a political party, shall not be made. Political contributions can include monetary items, non-monetary items (such as loaned or donated equipment, or free technology services) or use of corporate resources (such as facilities, e-mail, stationery, or personnel time).”

GRI 416-1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement

The company does not carry out such assessments of its product and service categories.

GRI 416-2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

There were no incidents of non-compliance with regulation and voluntary codes concerning the health and safety impacts of products and services.

GRI 417-3 Incidents of non-compliance regarding marketing communications

The Marketing & Communications Department confirmed that there is nothing to report on this point.

GRI 405-2 Ratio of basic salary and remuneration of men to women, by employee category and significant locations of operation

GRI 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

The company did not receive any complaints from outside parties or from regulated bodies in relation to breaches of customer privacy and losses of customer data.

The salaries of the Executive Directors, CEO Alan Borg and CFO Karl Dandler, are omitted from the above calculations. A disclosure of their annual earnings can be found separately in the remuneration report in the Financial Statements for the respective reporting period.